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Bridging the Gap: The power of digital investing for credit unions

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By Mart Vos, CEO, Eko
December 18, 2024

In today's rapidly evolving financial landscape, credit unions face the constant challenge of meeting their members' diverse needs while staying ahead of the curve. One increasingly important area is investment services. While many credit union members are eager to explore investment opportunities, they often need help with barriers such as limited access, complex processes, and a lack of personalized guidance. This is where the power of an integrated investment platform comes into play.

By seamlessly connecting investment services with their existing online banking platform, credit unions can unlock many benefits for their members and their institution. Let's delve into the advantages of this integrated approach:

1. Enhanced Member Experience

  • Convenience and Accessibility: Integrating investment services into the online banking platform eliminates the need for members to navigate separate websites or apps. They can seamlessly access investment tools and resources with a single login anytime, anywhere. This convenience fosters greater engagement and encourages members to participate actively in their financial development.
  • Familiarity and Trust: Members trust their credit union for their banking needs. Credit unions can leverage that trust by offering investment services within the same familiar environment, building confidence, and encouraging members to explore new financial opportunities.
  • Personalized Guidance: Integrated platforms can offer features like personalized portfolio recommendations, educational resources, and access to financial advisors. This empowers members to make informed investment decisions aligned with their goals and risk tolerance.

2. Increased Member Engagement and Loyalty

  • Holistic Financial Management: By integrating investment services, credit unions become a one-stop shop for their members' financial needs. This holistic approach fosters deeper relationships and strengthens member loyalty.
  • Data-Driven Insights: Integrated platforms provide valuable data and insights into members' investment behaviors and preferences. This allows credit unions to personalize their offerings, provide targeted advice, and proactively address member needs, further enhancing engagement.
  • Attracting and Retaining Younger Generations: Millennials and Gen Z increasingly seek digital-first solutions for their financial needs. An integrated investment platform caters to their preferences, helping credit unions attract and retain younger members. A case study by Eko Investments found that 65% of users on integrated platforms are millennials or Gen Z. This demonstrates how Eko's approach successfully makes investing accessible and appealing to younger demographics.

3. Growth and Revenue Opportunities

  • Expanded Product Offerings: Credit unions can attract new members and deepen relationships with existing ones by offering a wider range of investment services.
  • Non-Interest Income: Investment services can generate valuable non-interest income for credit unions, diversifying their revenue streams and strengthening their financial position. This can be further enhanced through revenue-sharing models offered by some integrated platforms.
  • Competitive Advantage: In a crowded financial marketplace, offering a modern, integrated investment platform can give credit unions a competitive edge. This is particularly important in the face of competition from fintech companies that are increasingly targeting credit union members with their investment and banking products.

4. Driving Financial Inclusion

Integrated investment platforms drive financial inclusion by making investing accessible to a broader audience. With low minimum investment amounts and user-friendly interfaces, these platforms break down barriers that traditionally prevent many individuals from participating in the stock market. This empowers more people to take control of their financial future and build wealth, regardless of their income level or prior investment experience.

Connect with Eko to learn more.

About Eko

Eko enables credit unions to offer digital investing starting from $10, directly on their existing banking platform via our natively integrated white-label solution.

Learn more about Eko